Pakistan plans to seek an increase in its currency swap arrangement with China when the facility expires in 2027.
Finance Minister Muhammad Aurangzeb said the government will make a formal request for an expansion. The existing facility is worth 30 billion yuan.
Aurangzeb said Pakistan has already fully utilized the current currency swap line. However, the government has not decided how much additional financing it will request.
China has indicated that it is open to considering the request. The finance minister said the formal process will still need to be completed.
The currency swap arrangement provides an important source of financial support for Pakistan. It also helps the country manage foreign exchange requirements and external payment obligations.
Separately, Pakistan has requested a $10 billion exchange stabilization facility from the United States. Aurangzeb expects Washington to respond to the request within two months.
The government is also discussing possible financing with the US Export Import Bank. Talks are also underway with the US International Development Finance Corporation.
EXIM financing could support aircraft purchases by Pakistan International Airlines. The purchases could involve Boeing aircraft following the privatization of the national carrier.
DFC financing could support another major investment programme. The proposed $5 billion programme aims to upgrade Pakistan’s oil refineries.
Aurangzeb said seeking financial support from both countries represents an “and and” approach. He described China as a long-standing strategic partner of Pakistan.
He also highlighted the country’s relationship with the administration of US President Donald Trump. The government is therefore pursuing financial cooperation with both countries.
Pakistan continues to depend on external financing for several important financial needs. These include supporting foreign exchange reserves and meeting external debt repayment requirements.
Financial support from China, Gulf countries, and international lenders remains important. Such support also contributes to economic stability and investor confidence.
The finance minister also discussed risks linked to global oil markets. He said Pakistan managed the initial increase in crude prices relatively well.
The increase followed US and Israeli strikes on Iran. However, Aurangzeb warned that the overall outlook has become more uncertain.
He said the country has secured sufficient oil stocks to meet its requirements through September. Pakistan is also considered well positioned for October supplies.
Planning for November oil supplies has already started. An institutional mechanism is reviewing the situation on a daily basis.
Aurangzeb warned that a prolonged conflict in the Middle East could create additional economic risks. A conflict continuing into November or December would be particularly concerning.
Such developments could affect Pakistan’s economic outlook and growth plans. The finance minister said the government’s 4 percent growth target could face risks.
The government is therefore monitoring external financing and energy market developments closely. Both factors remain important for maintaining economic stability.
The proposed expansion of the China swap facility could provide additional financial support after 2027. Meanwhile, the US request could offer another potential source of stabilization funding.
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Pakistan is continuing discussions with international partners as it manages external financing requirements. The outcome of these requests will determine the scale of additional support available.
